New Options Trading Present Interesting Opportunities for KMI

New options for Kinder Morgan Inc. (KMI) have opened up, offering potential attractive pricing strategies for investors. These options provide insights into market expectations for KMI's stock price.

Date: 13-02-2025

AI Rating: 6

Options Trading Details
New options contracts for Kinder Morgan Inc. (KMI) are now available, specifically with an expiration date of April 4th. A put contract priced at $25.00 indicates a current bid of 41 cents, allowing investors who sell-to-open the contract to have a cost basis reduced to $24.59. This strategy could be appealing considering the current price of KMI shares at $26.34. If the contract expires worthless, it provides a potential return of 1.64%, or 11.98% annualized, making it a strategic choice for interested buyers.

Call Option Insights
The call contract at $27.00 has a bid of 78 cents. Selling this as a covered call while holding shares at $26.34 can yield a total return of 5.47% should the stock get called away at expiration. There are chances that this call contract will expire worthless, with a 56% probability identified, allowing investors to retain both their shares and the premium. This could represent a 2.96% boost to returns, annualized at 21.64%.

Implied and Actual Volatility
The implied volatility for the put is noted at 29%, while the call's implied volatility is 31%. However, the actual trailing twelve-month volatility is estimated at 22%. Understanding these metrics is critical for investors looking to grasp potential price oscillations for KMI shares in the near term. By utilizing these options data, investors can better strategize around their positions and expectations for KMI.

Stocks: KMI